The increasing quality of life, the favorable impacts of beauty and personal care industry, especially hair and nail sector, on self-esteem and social connection, and the progressive consumer movement toward premium and luxury cosmetic brands are expected to drive market expansion throughout the forecast period. The need for specialized hair care products has been driven by an increase in customer concerns over scalp health and issues associated with hair thinning, hair loss, dandruff, and sensitive scalp. The market has been greatly influenced by consumer preference for hair care products recommended by experts. Fashion trends among consumers who desire hair style products are increasing salon hair care sales even further. In addition, increased premiumization and consumer demand for more personalized solutions are driving market expansion. The advent of functional and fashionable clips, barrettes, ties, and headbands in modern designs, materials, and shapes has also contributed to the expansion of the market for hair accessories.
As the demand for organic ingredients rises, customers throughout the globe are gravitating toward organic personal care products, which is likely to drive market expansion during the study period. In addition, the growing awareness of the detrimental consequences of chemicals and synthetic items is another factor contributing to the market’s expansion. The majority of consumers choose to purchase products with natural or organic labels, which is fueling industry expansion.
Current Trends in the Industry
Healthy, glossy, and well-groomed hairstyles have become essential to the U.S. consumer’s routine for improving their image. Thus, individuals take care of their hair, experiment with different haircuts, and are unafraid to attempt new and innovative accessories according to their whims, which fuels consumer demand. The increasing need for grooming products is anticipated to increase the demand for hair accessories.
Through social media influencers, bloggers, and vloggers, the internet has played a crucial role in increasing consumer awareness of hair accessories. Significant numbers of millennials follow internet superstars and influencers in order to learn and improve their personal grooming, makeup, and fashion skills. In recent years, consumers have also demonstrated a preference for simple-to-use products.
In recent years, consumer demand has increased, and this trend is anticipated to continue in the next years. A growing number of consumers are obtaining access to the internet and, as a result, different platforms that sell cosmetic products, including hair nail accessories. Additionally, people are becoming more conscious of new beauty and grooming trends.
Impact of Korean Beauty Industry Globally
Korea is an enormous manufacturing center. It manufactures cosmetics for export to the United States and Europe. Due to the high demand for K-beauty goods, Korean beauty startups have been able to enter the international market. To showcase the features of their products, K-beauty product firms are investing more in the packaging of their products by making it more appealing and inventive. Nonetheless, a number of firms are strategically purchasing K-Beauty start-ups and brands in order to remain competitive in the present beauty market. Cleaner label products and claims, such as cruelty-free and environmentally friendly, among others, have been increasing market share. This newfound interest in Korean skincare products has empowered customers by promoting their education on skincare. In addition, social media has added to the longevity of k-beauty. Celebrities and influencers alike are promoting their skincare regimen, which has helped propel it to the forefront of digital media. People became immersed in this new trend.
COVID-19 Pandemic’s Effect on the Industry
During the COVID-19 outbreak, supply chains were severely affected, particularly for cosmetics, as governments blocked their borders or erected trade obstacles. As a result, producers and exporters faced intense rivalry in the export market. In addition, supermarket and convenience store on-premises sales decreased as a result of the ensuing lockdowns and closures of retail outlets, as individuals engaged in social isolation and avoided gatherings and outings. However, the market penetration was substantially assisted by online retail sales. The COVID-19 issue has had a negative impact on the hair nail accessories sector, as extensive retail and salon store closures have led to a decline in sales of numerous beauty and personal care products on the global market. DIY (do-it-yourself) beauty care is an additional noteworthy trend. Many beauty salons have closed, and even in areas where they remain open, consumers are opting out of services out of fear of direct physical contact. In addition, after the COVID-19 disaster, many consumers would undoubtedly experience economic hardships due to the loss of jobs and money. Consequently, hair coloring, nail care, and other beauty-related areas are gaining new customers.
Direct-to-consumer e-commerce, such as brand websites, shoppable social media platforms, and marketplaces, will likely become more significant prior to COVID-19. Globally, consumers believe they are likely to increase their online spending and engagement. To catch and convert the attention of new and existing clients, beauty-industry players will need to prioritize digital channels. As safety and hygiene issues fundamentally disrupt product testing and in-person consultations, the application of artificial intelligence for testing, discovery, and personalization will need to increase on the operations side. The rate of innovation quickens. As seen by the COVID-19 crisis, the world can change rapidly, resulting in large fluctuations in demand. Occasionally, supply cannot meet demand. Even before the pandemic, brands were under pressure to revamp their product-innovation pipelines, as digital-native direct-to-consumer brands were able to get from concept to shelf in less than a month. Now, the demand for swiftness is even more pressing. To achieve that, contract manufacturers may play a larger role, both in diversifying (and so reducing production risks) and as thought partners in product creation. There is also the possibility for tighter collaboration, particularly between brands and merchants, through data sharing and inventory pooling.
Path Ahead
The companies operating in the hair and nail accessories sector have invested heavily in enhancing product quality and innovation in terms of ingredients, functionality, and packaging. As essential tactics for achieving consolidation and optimizing offers, the major firms are pursuing mergers and acquisitions and product innovation. In addition, major players merge with local players in order to dominate the local marketplaces.